Soloviev Offers Adding 513 Affordable Housing Units to Midtown East Casino Complex

The Soloviev Group has revamped its proposal for a casino complex in Midtown East, and it's now set to include a total of 1,325 apartments. What sets this apart is that a whopping 40 percent of these units will be designated as affordable housing, as reported by The New York Times.

The Promise of Affordable Housing

These 513 below-market rentals will be made accessible to households with incomes averaging around 80 percent of the area's median income. Soloviev's chief executive, Michael Hershman, clarified that providing this low-cost housing is economically viable only if the casino is part of the project. Developers have cited high property taxes on rentals as a major hindrance, especially after the expiration of the 421a tax break. The inclusion of a casino, in this case, essentially serves as a replacement for that subsidy.

Gaining Local Support

The introduction of income-restricted apartments is a strategic move to win the favor of the local community, a factor considered pivotal in the competition for up to three downstate casino licenses. It's noteworthy that two of these licenses might go to existing racinos in Queens and Yonkers. Previously, the community board for the district where Soloviev's vast, undeveloped parcel is located had voted against any casino proposals. However, the promise of affordable units could potentially change their stance, especially considering that the district had only added 356 such units from 2010 to 2020, according to the Furman Center.

A Bold Vision

Beyond the allure of affordable housing, Soloviev's proposal for the vacant seven-acre site on First Avenue between East 38th and East 41st streets is nothing short of ambitious. It envisions a 1,200-room hotel, retail and restaurant spaces, a democracy museum, and nearly five acres of green space along the East River, which would be open to the public. Notably, the plan also includes the scrapping of a Ferris wheel concept after it failed to gain community approval. The renowned Bjarke Ingels Group is handling the design of this development.

Strategic Partnership

Soloviev's project is in collaboration with Mohegan, and construction could commence in 2025, provided that the gaming license is granted and the necessary zoning approvals are obtained. It's also worth mentioning that Stefan Soloviev's late father, Sheldon Solow, had secured approval to develop the former Con Ed site with all market-rate housing, and this agreement still stands, according to the firm's statement to The New York Times.

In conclusion, Soloviev's casino proposal not only seeks to add an exciting entertainment complex to Manhattan but also offers a substantial benefit to the local community by addressing the demand for affordable housing. With the potential to revamp a previously undeveloped area, this project is poised to reshape the city's landscape if it secures the necessary approvals.